Under Development

$340M Mixed-Use Development Coming to East 86th Street

Rendering of the new 147 East 86th Street.

A new $340 million, 230,000-square-foot HOK-designed mixed-use development is coming to the northeast corner of East 86th Street and Lexington Avenue.

The residential portion of the building, on floors five to 20, will be home to 50 luxury condominium units, developer Lou Ceruzzi of Ceruzzi Properties, a partner in the project primarily responsible for the retail component, told Commercial Observer. There will be about 30,000 square feet of retail space on the ground, second and lower levels of the building to be erected at 147 and 151 East 86th Street (it will use the address 147 East 86th Street). New York Sports Clubs will occupy 24,000 square feet on the third and fourth floors through a sale-leaseback. The asking rent for the commercial portion is $10 million net a year, said Ripco Real Estate’s Andrew Mandell, who is marketing the retail space. Read More

Lease Beat

Café Chain Stolle Signs First Brooklyn Deal

Stolle is taking the part of Tio Pio's space at 119 Court Street outlined in yellow.

Nearly three months after announcing it would be opening its first U.S. location in Long Island City, Russian pie-maker Stolle reveals it’s heading to Brooklyn, too.

Commercial Observer has learned that Stolle has signed a sublease for part of Tio Pio‘s space at 119 Court Street at the corner of State Street in Downtown Brooklyn. The pie company, which will open in September, took 500 square feet of ground-floor retail space in a 10-year deal. The asking rent was $250 per square foot, according to Winck Realty Group. Read More

Sales Beat

South Bronx Building Value Doubles in Recent Sale

51 Bruckner Boulevard (Photo: Ariel Property Advisors).

An investor has paid $1.8 million for a mixed-use Bronx building, hoping to capitalize on a swath of development in the southern portion of the borough, Commercial Observer has learned.

Arkadia Property Group closed Wednesday on its purchase of 51 Bruckner Boulevard, a four-story building with 700 square feet of retail space, according to Ariel Property Advisors. The price tag is double the $900,000 price the building last traded hands for in late 2007. Ariel declined to provide the seller’s identity, but the owner is listed in property records as Al Dog Enterprises. Read More

Lease Beat

Nine West Subleases to Republic Clothing Group

1411 Broadway.

Republic Clothing Group is slipping into a pair of Nine West Holdings floors at 1411 Broadway, The New York Post reported.

The fashion company is subleasing about 55,500 square feet on the 34th and 35th floors of the tower between West 39th and West 40th Streets. Republic Clothing Group won’t have to move far, however, since it’s currently housed across the street at 1440 Broadway, according to the Post.   Read More

Sales Beat

Ceruzzi, SMI USA Buying Midtown Site From Thor for $325M

Rendering of what's to come at 520 Fifth Avenue (Image: CoStar).

Ceruzzi Properties and Shanghai’s SMI USA are purchasing a demolished East Midtown site from Thor Equities in a $325 million deal for land and air rights, Ceruzzi head Lou Ceruzzi told Commercial Observer. The deal is under hard contract.

“We expect to build retail, hotel and residential,” Mr. Ceruzzi said about the site at 520 Fifth Avenue between West 43rd and West 44th Streets. The Handel Architects-designed 71-story building can be as big as 400,000 square feet, he noted. The buyers hope to break ground by the end of the year. Read More

Real estate and Technology

New App Helps With Commercial Real Estate Site Selection

The Placemeter platform (Image: Placemeter).

A new data gathering platform is making it easy for landlords and tenants to gauge the best commercial real estate plays.

Placemeter, which became available to the public this week, is a computer vision startup that can take video feeds of a fixed space and counts people, cars and bicyclists as they move through a space, as well as make observations about behavior (such as if they turn, stop, etc.). Its inventor, Alexander Winter, told Commercial Observer that the system can make accurate counts in all kinds of weather and that the team is proud of the simplicity of its set up for users. Read More

Lease Beat

Ralph Lauren Expands Its Fabric at Starrett-Lehigh

The Starrett-Lehigh Building.

Ralph Lauren is increasing its waist size at RXR Realty’s Starrett-Lehigh Building.

The high-end designer is upping its foothold by 60,000 square feet so it and a subsidiary can spread out in the building, Crain’s New York Business reported. Ralph Lauren and Club Monaco, the offshoot brand, now have more than 100,000 square feet at the 20-story structure officially at 601 West 26th Street at the corner of 11th Avenue. Read More

Lease Beat

Frisco Flash Storage Firm Finds Flat for Itself at 655 Third Ave.

655 Third Avenue.

Nimble Storage, a San Francisco-based flash storage solutions firm that consolidates workloads and eliminates storage silos, is coming to New York City, Commercial Observer has learned.

The firm has signed a three-year lease for 6,609 square feet on the ninth floor at 655 Third Avenue between East 41st and East 42nd Streets, according to the building owner, The Durst Organization. The length of the lease is so short because “it’s a rapidly growing company and they want the option to expand,” said a spokesman for Durst. The asking rent was in the high-$50s per square foot. Read More

The Lobby

Eastern Consolidated Names Mark Schnurman a Principal

Mark Schnurman.

Mark Schnurman has been promoted to principal at Eastern Consolidated, and will continue overseeing the brokerage’s sales division, Commercial Observer has learned.

Mr. Schnurman, who writes a column for CO, will now play a role in guiding where the company is going. He is also the chief sales officer, a role he took last year after starting as a sales manager in 2013, responsible for sales recruitment and development. During that time, according to the company, the Penn State University graduate has doubled the brokerage team and continues bringing in more members, Eastern Consolidated said in a press release. Read More

Lease Beat

Barneys Settles into LIC Space

5-25 46th Avenue.

Barneys New York has moved some of its visual operations to 5-25 46th Avenue in Long Island City. The high-end fashion company has leased 10,000 square feet at the building between Fifth Street and Vernon Boulevard, according to The Real Deal, which first reported news of the lease.

Asking rent in the 46,000-square-foot building is $35 per square foot, TRD reported. Read More